CLIMATEWIRE | The president of one of the world’s largest insurance brokers warned Wednesday that climate change is destabilizing the insurance industry, driving up prices and pushing insurers out of high-risk markets.
He added, “Just as the U.S. economy was overexposed to mortgage risk in 2008, the economy today is over exposed to climate risk.” Although the hearing covered familiar themes, it occurred at an opportune moment. Major hurricanes and wildfires have driven insurance markets into crisis in Florida, Louisiana, California and are weakening insurers in other Western states such as Colorado and Oregon .
“The California FAIR plan is growing unsustainably high,” Watkins said. She noted that the plan can impose an “unlimited assessment” on insurance companies operating in the state if it is unable to pay claims.FAIR plans have been growing in many states. Florida’s state-run Citizens Property Insurance Corp. now has 1.2 million policies, nearly triple the number it had in 2019.
Watkins said that when insurance companies stop selling policies in an area, it “can cause ripple effects that endanger entire communities and create a downward spiral that’s difficult to emerge from.”
Nature is nature... stop blaming climate change 😤
These types of events have always happened. The problem is, humans are now everywhere, and therefore exposed to every type of storm, strong or weak. If you drain a swamp, build 1,000 houses on it during a dry season, it will flood later on during a wet season. It's nature.
pd_monkey Well, maybe it's time the uber rich insurance industry takes on the fossil fuel industry since they bear the largest share of responsibilty for climate change.
More lies and propaganda!
Insurance of every kind has been made into rackets under pharisees. Insurance is a luxury, if you want to mandate people have it they have to be able to afford it and those providing it be liable to provide above a pay to play racket. Another thing the rich get away controlling.
Think this has been happening for years now. Lived in the Hampton Roads area in early 2000s. Even then insurance was pulling back on areas with repeat flooding.
Beach front Condos are still being built around the world.
It's not climate change and you reap what you sow and all them dirty companies in America that steal and robust they're going to get what they deserve they saying in business transactions from the court to the companies and you reap what you sow you cheat US
and like so many industries ~ they can not be bothered until they are directly and negatively effected.
Hellya climate change also forced Putin to invade Ukraine
When they stop insuring ocean front property , let me know.
If climate change is a bunch of people moving towards the coast and wondering why they get hit by hurricanes. Then yes.
Climate has changed throughout all of earth’s history. Insured mansions on sandy beaches & barrier islands are a new development. The super volcanic eruption or a sizable space rock impacting earth’s surface are both overdue. Come on “scientific” American, don’t be so captured!
Unscientific Crap
Insurance industry does it want insure only the predictable? Who doesn't love an easy win?
They should’ve known better…
No kidding and people just live in denial thinking it will never touch them personally
Scientific American = Hoaxes and nothing but hoaxes.
The crisis they don’t face is a “crisis of profit”.